DSP Group, Inc. the leader in the development and licensing of high-performance, low-power, digital-signal-processor (DSP) cores, today introduced its VoPKey™, a licensable design that offers a complete solution for Voice-over-Packet (Vo

SANTA CLARA, Calif.- Dec. 3, 2001 DSP Group, Inc. (NASDAQ: DSPG), the
leader in the development and licensing of high-performance, low-power,
digital-signal-processor (DSP) cores, today introduced its VoPKey™, a
licensable design that offers a complete solution for Voice-over-Packet
(VoP) applications. The new design, ready to license, is targeted to the
residential gateway and small/medium-sized enterprise markets. Licensees
of DSP Group's VoPKey design will be able to offer a highly integrated
System-on-a-Chip (SoC) for applications such as Voice over
-Internet-Protocol (VoIP), Voice over Digital Subscriber Line (VoDSL) and
Voice Over Cable.

Today's news follows DSP Group's October 1 announcement that the
company had unveiled a digital still camera solution incorporating its
Teak® programmable DSP core and software from its strategic partner MEICOM
Technologies. The recent move to extend DSP Group's licensing model is
part of the company's new OpenKey™ application solution family program, in
which DSP Group will offer customers total solutions for emerging
DSP-based applications. The company will also continue with the successful
licensing of its DSP cores.

The new licensable VoPKey design, available now, is a complete hardware
and software design, capable of handling up to four full-duplex,
echo-cancelled VoP channels. The offering, based on DSP Group's TeakLite®
programmable DSP core, incorporates the hardware interfaces and broad DSP
software suite required for a complete VoP Integrated Circuit design. As
the solution is built around DSP Group's programmable TeakLite DSP core,
licensees of VoPKey will have the option to add their own software to
enhance and customize their products and to target their solutions to
multiple markets.

"Our VoPKey licensable design solution is targeted especially at
semiconductor companies and original equipment manufacturers (OEMs) that
plan to enter into the emerging Voice-over-Packet market," said Gideon
Wertheizer, executive vice president of DSP Group. "By using our VoPKey
design, our licensees can obtain immediate access to VoP markets, while
designing, in parallel, highly integrated SoC that take advantage of the
VoPKey soft-core design methodology."

The VoPKey solution includes all the required DSP software for speech
compression/decompression, echo cancellation and associated
telephony-signaling functions. The VoPKey software is an open
architecture, allowing customers to add proprietary algorithms or use the
design in innovative VoP applications. The hardware design of VoPKey
includes interfaces to industry-standard microprocessors (such as
PowerPC®, ARM® and MIPS®), Analog to Digital Converters, Digital to Analog
converters, Time Division Multiplexing ports, as well as general-purpose
Input/Output ports.

VoPKey, already available as mass-production chip, comes with complete
reference designs developed with leading semiconductor vendors such as
NEC, Agere, Intersil and Legerity. Additional reference designs are in

"Aiming to facilitate the entry of our customers to emerging DSP
applications, we plan to develop and license a series of comprehensive,
flexible solutions, as part of our OpenKey family," said Bat-Sheva Ovadia,
DSP Group's vice president of marketing and business development. "Our
earlier digital-camera announcement and now this VoP announcement are just
the first of a line of more application-optimized platforms from DSP


The VoPKey licensing solution is available immediately. For further
details, customers may contact Issachar Ohana, vice president of sales of
the licensing division, at [email protected] or [email protected].
Regional sales contacts are listed on the
web site.

About DSP Group, Inc.

DSP Group, Inc., is a global leader in the development and marketing of
high-performance, cost-effective, licensable DSP cores. The company's
family of DSP cores provides ideal solutions for low-power, cost-effective
applications, such as cellular, broadband communications, VoIP,
multimedia, advanced telecommunications systems, disk-drive controllers,
and other types of embedded-control applications. By combining its DSP
core technologies with its proprietary, advanced speech-processing
algorithms, DSP Group also delivers a wide range of enabling,
application-specific integrated circuits for full-featured,
integrated-telephony products and applications, including spread spectrum
wireless technologies. DSP Group maintains an international presence with
offices located around the globe. More information about DSP Group is
available from its Web site at www.dspg.com.

This press release contains statements that qualify as
"forward-looking statements" under the Private Securities Litigation
Reform Act of 1995, including statements made by Ms. Ovadia about the
Company's long-term strategy to develop and license more comprehensive,
flexible solutions and application-optimized platforms, as well as,
statements about expansion of the Company's licensing model. These
forward-looking statements are based on current expectations and the
Company assumes no obligation to update this information. In addition, the
events described in these forward-looking statements may not actually
arise. The Company's actual results could differ materially from those
described in this press release as a result of various factors, including,
the acceptance by customers of the VopKey coprocessor, the Company's
ability to develop and license more application-optimized platforms
incorporating the Company's technology at cost-effective prices and to add
innovative features that differentiate its products from those of its
competitors and the general market demand for products that incorporate
the Company's digital cordless technology. For further discussion of such
factors, see the information provided under the heading "Factors Affecting
Future Operating Results" in our quarterly report on Form 10-Q for the
quarter ended September 30, 2001, which was filed with the Securities and
Exchange Commission and is also available on our Web site (www.dspg.com)
under Investor Relations.

Teak, TeakLite, SmartCores, OpenKey and VoPKey are trademarks or
registered trademarks of DSP Group, Inc. Other brands and products
referenced herein are the trademarks or registered trademarks of their
respective holders.